Expensive 4WDS lead a life of luxury

Sales of expensive 4WDs are booming as owners thumb their noses at high running costs, reports JAEDENE HUDSON.

Expensive 4WDS lead a life of luxury

30 August 2010Jaedene Hudson

The fuel price crisis and high interest rates have failed to dent sales of the country's biggest, thirstiest and most expensive vehicles.

Sales of luxury four-wheel-drives, some of which use more than 20 litres/100km of fuel around town, have grown by 10 per cent in the first eight months of this year, in contrast to most segments of the market, which are down on last year.

Figures from the Federal Chamber of Automotive Industries show August new vehicle sales were down 5.2 per cent compared with last year. Sales for the year so far are down 3.4 per cent compared with last year.

The results have prompted the FCAI to revise its forecast for annual new-car sales of 980,000 down to 970,000.

As sales of small, medium and large off-roaders continue to fall, the top end of the off-road market remains unbowed, despite a soft month in August.

Growth in the segment has been spurred by the all-new Mercedes-Benz M-Class and the Range Rover Sport. Increased sales of the Volvo XC70 and XC90 off-roaders have also contributed.

The Lexus RX330, which took over as market leader from the M-Class in July, remains in top spot with the M-Class in second and BMW's ageing X5 now third.

The resilience of the luxury market is also reflected in car sales. Sales of mid-sized luxury cars (costing more than $55,000) are up by 18.7 per cent this year compared with the same eight months last year, despite the fact that sales of medium cars are down by 3.4 per cent overall.

Sales of small luxury cars are also up, by 15 per cent compared with last year, despite the total small-car market rising by only 3 per cent.

While luxury cars are holding their own the real star performers in the market continue to be at the budget end. Sales of the smallest cars (such as the Hyundai Getz, Toyota Yaris and Mazda2) are up by 22.7 per cent so far this year.

A spokesman for the FCAI said the figures for the overall market reflected the impact of both interest rates and fuel prices. "These trends are driven by the hip pocket. The cheapest segment of the market is booming and the most expensive is also strong, because it is unaffected by cost considerations," he said.

He said interest rates had put the spotlight on vehicle running costs and repayments, prompting buyers to look at downsizing.

The only segment where sales continue to fall, regardless of the price tag, is the large-car market which is still struggling and down by 27.4 per cent compared with last year.

The new Holden Commodore and the coming Toyota Aurion are expected to reinvigorate that market.

Of the 4986 Commodores sold in August, more than half were the all-new VE model.

With the VE on sale for only two weeks, it is too early to predict monthly sales totals - but Holden spokesman Jason Laird says it has been a "reassuring start ... It puts us back in the No. 1 spot" and sales of the higher-end models (Calais-V and SS-V) were better than expected.

Toyota sold 3023 four-cylinder Camrys last month, up by 45.7 per cent compared with August last year.

The news is not good for Ford. Sales of the Falcon are down by 19.7 per cent this year, while Territory sales are down by 18.4 per cent.